Paraguayan Bank Prices Bond Retry

Paraguayan Bank Prices Bond Retry

October 11, 2012

Banco Continental Paraguay has priced a $200m bond, mirroring the terms it got in an initial attempt to complete an international sale in June. The bank's debut, and the second-ever issuance from a Paraguayan borrower, drew more than $550m in orders. The Ba3/BB minus 2017 priced at par with an 8.875% coupon to give a yield in line with 8.875%-area guidance that followed low 9.000% whispers. Investors comfortable with the zip code drawn in by the attractive yield and scarcity value. The bank priced a similar sale in June, which the leads elected not to settle due to the impeachment of President Fernando Lugo rattling the markets. With the change in leadership bringing less political instability than initially feared, a return was always in the lender's plans. This time, the issuer was able to cut short its roadshow, which had been scheduled to run through today. Bank of America Merrill Lynch managed the sale, the second ever from a Paraguayan, according to Dealogic data. BBVA Paraguay raised a $100m 2016 in February 2011. The sovereign is also considering its first foray into the international markets, having met investors on a 2-day roadshow last month.

Banco Continental Paraguay has priced a $200m bond, mirroring the terms it got in an initial attempt to complete an international sale in June. The bank's debut, and the second-ever issuance from a Paraguayan borrower, drew more than $550m in orders. The Ba3/BB minus 2017 priced at par with an 8.875% coupon to give a yield in line with 8.875%-area guidance that followed low 9.000% whispers. Investors comfortable with the zip code drawn in by the attractive yield and scarcity value. The bank pric